| Business Segments |
12. Business Segments We evaluate performance and allocate resources, based on the Animal Health, Mineral Nutrition and Performance Products segments. Certain of our costs and assets are not directly attributable to a segment or segments and we refer to these items as Corporate. We do not allocate Corporate costs or assets to the other segments because they are not used to evaluate the segments’ operating results or financial position. Corporate costs include certain costs related to executive management, information technology, legal, finance, human resources and business development. The accounting policies of our segments are the same as those described in the summary of significant accounting policies included herein. We evaluate performance of our segments based on Adjusted EBITDA. We calculate Adjusted EBITDA as net income (loss) plus (a) interest expense, net, (b) provision for income taxes or less benefit for income taxes, (c) depreciation and amortization, (d) other expense or less other income as separately reported on our consolidated statements of operations, including foreign currency (gains) losses, net and (e) certain items that we consider to be unusual, non-operational or non-recurring. | | | | | | | | | | | | | | | Three Months | | Six Months | For the Periods Ended December 31 | | 2024 | | 2023 | | 2024 | | 2023 | Net sales | | | | | | | | | | | | | Animal Health | | $ | 229,418 | | $ | 173,104 | | $ | 411,941 | | $ | 333,634 | Mineral Nutrition | | | 63,250 | | | 61,347 | | | 122,312 | | | 117,373 | Performance Products | | | 16,593 | | | 15,492 | | | 35,440 | | | 30,285 | Total segments | | $ | 309,261 | | $ | 249,943 | | $ | 569,693 | | $ | 481,292 | | | | | | | | | | | | | | Depreciation and amortization | | | | | | | | | | | | | Animal Health | | $ | 10,286 | | $ | 7,348 | | $ | 17,949 | | $ | 14,697 | Mineral Nutrition | | | 515 | | | 660 | | | 1,031 | | | 1,306 | Performance Products | | | 292 | | | 433 | | | 625 | | | 859 | Total segments | | $ | 11,093 | | $ | 8,441 | | $ | 19,605 | | $ | 16,862 | Adjusted EBITDA | | | | | | | | | | | | | Animal Health | | $ | 58,177 | | $ | 39,299 | | $ | 98,561 | | $ | 67,793 | Mineral Nutrition | | | 5,702 | | | 3,507 | | | 9,464 | | | 6,388 | Performance Products | | | 1,888 | | | 817 | | | 4,177 | | | 2,226 | Total segments | | $ | 65,767 | | $ | 43,623 | | $ | 112,202 | | $ | 76,407 | Reconciliation of income before income taxes to Adjusted EBITDA | | | | | | | | | | | | | Income (loss) before income taxes | | $ | 4,838 | | $ | 3,565 | | $ | 14,458 | | $ | (8,414) | Interest expense, net | | | 8,996 | | | 4,659 | | | 16,637 | | | 9,223 | Depreciation and amortization – Total segments | | | 11,093 | | | 8,441 | | | 19,605 | | | 16,862 | Depreciation and amortization – Corporate | | | 481 | | | 469 | | | 973 | | | 919 | Corporate costs | | | 17,592 | | | 14,171 | | | 33,371 | | | 28,304 | Acquisition-related cost of goods sold | | | 1,634 | | | 310 | | | 1,634 | | | 310 | Acquisition-related other | | | 8,815 | | | — | | | 12,239 | | | — | Pension settlement cost | | | — | | | 249 | | | — | | | 10,674 | Brazil employment taxes | | | — | | | 4,202 | | | — | | | 4,202 | Insurance settlement gain | | | (1,257) | | | — | | | (1,257) | | | — | Stock-based compensation expense | | | 180 | | | 80 | | | 359 | | | 161 | Phibro Forward income growth initiatives | | | 1,696 | | | — | | | 2,046 | | | — | Foreign currency losses, net | | | 11,699 | | | 7,477 | | | 12,137 | | | 14,166 | Adjusted EBITDA – Total segments | | $ | 65,767 | | $ | 43,623 | | $ | 112,202 | | $ | 76,407 |
| | | | | | | | | December 31, | | June 30, | As of | | 2024 | | 2024 | Identifiable assets | | | | | | | Animal Health | | $ | 1,011,145 | | $ | 684,407 | Mineral Nutrition | | | 76,950 | | | 67,088 | Performance Products | | | 50,998 | | | 50,862 | Total segments | | | 1,139,093 | | | 802,357 | Corporate | | | 146,416 | | | 179,827 | Total | | $ | 1,285,509 | | $ | 982,184 |
The Animal Health segment includes all goodwill of the Company. Corporate assets include cash and cash equivalents, short-term investments, debt issuance costs, income tax-related assets and certain other assets.
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